The car continues its rule of the road: but ownership is evolving

Reports of the “death of the car” are exaggerated, new international report shows

Bracknell, UK – 26 November 2019: The car’s popularity will stay strong in the upcoming mobility shift, but attitudes towards ownership will change significantly, according to a new report released today. The Road Ahead: The Future of Mobility Report from mobility leader Avis Budget Group, reveals that over the next decade, consumers are likely to move to an access-driven, on-demand model for their favourite mode of transportation.

The report carried out and examined consumer research across 16 markets in Europe and Asia, and has revealed that reports of the ‘death of the car’ are greatly exaggerated.

Today, 82% of people surveyed thought owning a car was still important, 77% report that they own a car outright, and nearly 50% still see the car as their “ideal” mode of transport. However, this is set to change with more than two thirds (68%) of people thinking that outright car ownership will not be the most popular way to access a car within the next decade, and over half (54%) are prepared to give up car ownership and rely on long-term rental, on-demand or subscription services. In fact, 59% of those surveyed said, they expect more subscription and on demand services for cars and vans over the next few years.

Keith Rankin, President, International, Avis Budget Group, said: “Driven by technology advancements and the influence of services like Amazon, Netflix and Spotify, people today want to consume and access products and services at the click of a button. The expectation for an on-demand service has impacted the mobility industry and resulted in the evolution we’re seeing today – from being able to book a taxi instantly to hiring a car for a week-long holiday, all from your smartphone. However, our report reveals that we are now seeing a rise in this demand for instant access and flexibility, resulting in changing behaviours towards car ownership.

“Changing needs and the expansion of the sharing economy offer both challenges and opportunities for the mobility industry. Our research has shown that whilst consumers are expectant of connected, integrated and on-demand services, they still want convenience at a reasonable price.

“It’s imperative that different mobility players work together to ensure the future needs of consumers are met. We have demonstrated the success of collaboration, as shown with our fleet management as a service (FMaaS) partnerships with Via and Lyft, and our agreements with Ford and Continental in providing connected cars. Our partnerships demonstrate well how the sector can work together to provide the on-demand and connected services that customers want. These can range from a technology giant delivering 5G, or local governments working with the private sector for improved, urban EV access for residents.”

The Avis Budget Group Road Ahead: The Future of Mobility trends report examined the current and near future mobility landscape across markets in Europe and Asia. https://avisbudgetgroup.com/roadahead/

Avis Budget Group, Inc. is a leading global provider of mobility solutions, both through its Avis and Budget brands, which have more than 11,000 rental locations in approximately 180 countries around the world, and through its Zipcar brand, which is the world’s leading car sharing network, with more than one million members. Avis Budget Group operates most of its car rental offices in North America, Europe and Australasia directly, and operates primarily through licensees in other parts of the world. Avis Budget Group has approximately 31,000 employees and is headquartered in Parsippany, N.J. More information is available at www.avisbudgetgroup.com